FCA & PSA expected to sign $50 billion binding merger by early-December


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FCA & PSA expected to sign $50 billion binding merger by early-December

As talks were progressing over rubberstamping a 50-50 merger between the London-based Italian-American carmaker Fiat Chrysler and Peugeot maker French PSA which in effect would be creating the world’s fourth-largest automotive company, a source familiar with the negotiations unveiled on Saturday, the 2nd of November 2019, on condition of anonymity that the two automotive industry Goliaths had been sketching out a plan to seal a final merger accord as early as by the beginning of December.

In point of fact, latest update on progresses over a plausible PSA-FCA merger deal came forth a day after the companies had issued a joint statement confirming an advanced-staged merger talk between the automakers, as the automakers were seeking to join forces at a 50-50 share merger to grapple with a growing expense in newer technologies over the narratives of a waning auto demands all over the world this year, while German Volkswagen had been the only automaker to post a quarterly profit in the third quarter of the year.

Meanwhile, confirming a La Stampa daily newspaper report published earlier on Saturday (November 2nd), the source said that the two groups had been finalizing the merger details, while the automakers were expecting to sign a memorandum of understanding (MoU) in three to four weeks adding, “This means the final agreement should be signed by early December, or by Christmas at the latest. ”